Hi, Gerard (& others),
There is an IRS publication that goes into the detail of how the mileage rate is calculated. It used to be easier to find than it is with the current website.
At any rate, part of the rate is based on the average price of gas, part is based on the average cost of car repairs, etc.
It is generally easiest to use the standard rate, but I've worked for companies where they took apart the rate for some employees who used their cars substantially more for work than others: specifically people who made sales calls over large geographic regions. These people got a "car allowance" (a taxable pay type), and a reduced amount paid per mile. It also came with a stipulation that to receive a car allowance, the car driven had to be 5 years old or less.
It's really a company by company thing, but, again, the standard mileage rate is fair UNLESS there is a huge amount of mileage paid, in which case you might want to come to fair terms another way.
-Nancy
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Nancy McCleary CPA
Accountant
San Diego CA
United States
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Original Message:
Sent: 11-10-2018 02:13 PM
From: Gerard Walsh
Subject: Mileage deduction
The current standard mileage deduction is $0.545 per mile. Does a car with, say 250,000 miles get this deduction just as would a car with, say, 20,000 miles?
Thank you,
Rod Walsh